Dow Jumps 1.3% as Fed Announces New Moves Despite Losing 10% of the Nation’s Workforce

The U.S. Labor Department on Thursday reported an additional 6.6 million Americans filing for unemployment benefits, making the total number of unemployment in the past three weeks jump to more than 16 million or 10% of the U.S. workforce in the wake of the coronavirus pandemic.

 

However, Dow Jones gained 300 points or 1.28%, rising to 23,733.35 points. S&P 500 increased 0.81% while Nasdaq rose 1.17%.

The gain in the stock market might be due to the Federal Reserve earlier statement which indicated its new moves to finance the U.S. businesses and revenue-pinched governments with a budget of $2.3 billion. The plan also includes purchasing corporate bonds both at an investment-grade level as well as high-yield, or junk, bonds.

“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Fed Chair Jerome  Powell in a statement. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”